GLOBAL ISLAMIC FINTECH REPORT 2021 - #GIFTREPORT2021 - SALAAM GATEWAY
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Produced by: Marketing Partner:
Global Islamic
Fintech Report
2021
Strategic Partners:
Gold Partners:
Fintech Partners:
#GIFTReport2021
Contents
4 Executive Summary 32 Industry View
6 Report Purpose & Approach 43 Overall Outlook & Strategic Considerations
7 Islamic Fintech Landscape 47 Appendices
14 2021 GIFT Index 55 Acknowledgements
18 Hubs Analysis
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Introduction
Executive Summary
As digital transformations accelerate across the Islamic
Tayyab Ahmed Abdul Haseeb Basit
finance ecosystems worldwide, the Global Islamic Fintech Associate Partner, Co-Founder & Principal
Islamic Finance Lead Elipses
Report 2021 presents groundbreaking insights on the DinarStandard
booming Islamic Fintech landscape that has identified 241
Fintechs globally.
The Report presents an estimated market Meanwhile, the GIFT Index of 64 countries, Lack of Capital, Consumer Education, and The Report has been produced jointly by
sizing of transaction volume, a country- ranks Malaysia, Saudi Arabia, UAE, Indonesia Finding Talent. Meanwhile, the respondents DinarStandard, a leading Islamic economy
level benchmarking index of 64 countries, and UK as the top 5 strongest ecosystems. considered Payments, Deposits & Lending management consultancy, and Elipses, a
industry views, and an analysis of gaps and It is a composite index of 32 indicators and Raising Funds as the top growth leading ethical digital finance advisory and
opportunities across key sub-categories and covering 5 categories: Islamic Fintech market segments in 2021. investment firm. We have joined forces to
geographies for government policy makers, & ecosystem, talent, regulation, infrastructure present the most comprehensive view that
Islamic Fintechs, and investors in this space. & capital. Our opportunity analysis shows We are also grateful to have special we trust will contribute to Islamic Fintech’s
that besides the top 5 strongest ecosystems, contributions by industry leaders who role in driving Islamic financial ethos of
The Report estimates the 2020 Islamic Kuwait, Pakistan, Qatar, Bahrain, and Jordan represent industry, regulation, Shariah- equitable financing world-wide.
Fintech transaction volume within OIC* are fast maturing ecosystems. compliance and investor views.
countries to be $49 billion. While this
represents 0.7% of global Fintech transaction The Report also gathered inputs from the One of the key area of insights for investors
volume, Islamic Fintechs are projected to industry in the form of a global survey of and Fintech players are the areas of Islamic
grow to $128 billion by 2025 at 21% CAGR. Islamic Fintechs. From the 100 survey Fintech categories and geographies that
This is a higher growth projection compared respondents 56% of Islamic Fintechs expect are underdeveloped. Payments, Deposits &
to conventional Fintechs projected at 15% to raise an equity funding round in 2021 Lending, and Raising Funds categories are
CAGR for the same period. with an average round size of USD 5.0M. relatively crowded segments, but continue to
This shows the continuing confidence in display high momentum, and represent low-
Saudi Arabia, Iran, UAE, Malaysia and the growing ecosystem. The respondents hanging fruit for investors. Regionally, Sub-
Indonesia are the largest with estimated also highlighted the greatest hurdles to be Saharan Africa, MENA (ex-GCC) have gaps
transaction volume. across the 9 iFintech services segments.
* OIC (Organisation of Islamic Cooperation) 57 member countries
4 Global Islamic Fintech Report 2021 Introduction
Introduction
Summary Infographic
At $49 Bn in transaction volume (2020), Islamic Fintech in OIC countries is fast
growing, yet with many geographies and categories vastly underdeveloped
Fast Growing Country Index OIC Hubs Opportunities
While 0.7% of global Fintech transaction The GIFT Index of 64 key Islamic While Malaysia leads the Maturity Model, Saudi Arabia, Pakistan, Indonesia, Qatar, and
volume, Islamic Fintech in OIC countries Fintech markets show OIC countries Kuwait, are exciting hubs that should be on investors’ horizons
poised to grow at 21% CAGR through 2025 dominating in top 10 while non-OIC
iFintech Hubs Maturity Matrix
countries dominate next 20 Emerging - Leaders -
$128 Bn High Growth, High Growth,
Low Conduciveness High Conduciveness
Kuwait
1 Malaysia 11 Jordan UAE
(Market Size CAGR, 2020-25)
Malaysia
Key:
21% CAGR
(vs 15% for global
2 Saudi Arabia 12 Singapore
conventional Fintech )
3 U.A.E 13 U.S.A Pakistan
iFintech Growth
Jordan
Other Qatar
4 Indonesia 14 Hong Kong
Indonesia
$49 Bn 5 U.K 15 Oman Indonesia
Saudi Arabia
Malaysia 6 Bahrain 16 Australia Iran
UAE 7 Kuwait 17 Switzerland
Dormant - Bahrain Maturing -
Iran
8 Iran 18 Canada Low Growth, Low growth,
9 Pakistan 19 Bangladesh Low Conduciveness High Conduciveness
Saudi Arabia Ecosystem Conduciveness (Index Score)
2020 2025 10 Qatar 20 Luxembourg
Industry Views (100 survey respondents) Islamic Fintech Category Global Opportunities Heatmap
Opportunities
South & Sub-
FUNDING
MENA- North Central MENA- Saharan
Total number of Islamic Fintechs Region SE Asia GCC Europe America Asia Other Africa
56%
of Islamic Fintechs expect to raise an equity funding identified: Alternative Finance 8 8 11 2 1 2
round in 2021 with an average round size of USD 241 Capital Markets 1 1
5.0M. Digital Assets 2 8 5 3 2
Fintechs: What are the greatest Fintechs: What are the greatest
Raising Funds, Deposits and Payments 9 17 2 5 4
hurdles to growth for your firm? enablers to growth for your firm? Lending, Wealth Management,
Raising Funds 20 4 8 4 2 5 1
Payments and Alternative Finance
1Capital 1 Capital Deposits and Lending 11 12 13 2 2
are leading categories accounting
2 Consumer Education 2 Unserved Customers Wealth Management 5 6 8 9 2 1 1
for 77% of Islamic Fintech firms
3 Finding Talent 3 Talent Base Insurance 3 1 1 1
Sub-Saharan Africa, MENA (ex-GCC) Social Finance 3 1 4 1 1 1 1
4 Ongoing Impact of Covid-19 4 Geographic Expansion
have gaps across the 9 iFintech
5 Differing Regulation 5 Increased Digitisation after 62 58 51 18 17 12 7
Top 5 hurdles ranked by survey responses
Covid-19 services segments. Low High
Top 5 enablers ranked by survey
from 12 options presented
responses from 12 options presented
Notes: OIC (Organization of Islamic Cooperation) 57 member countries. Islamic Fintech market size estimated projected transaction volumes.
Arrows = Change vs 2019 The GIFT Index is based on 32 indicators covering 5 categories: Islamic Fintech market & ecosystem, talent, regulation, infrastructure, & capital. (See Report methodology section for full details)
5 Global Islamic Fintech Report 2021
Introduction
Report Purpose &
Approach
Context Objectives
Since our last Fintech Report in 2019, Islamic 4. Survey Insights
1. Analytical Overview
Fintech has continued to grow apace, Provide an overview of the global Provide original insights from government
with over 240 Islamic Fintechs globally Islamic Fintech ecosystem, as well as agencies in Islamic Fintech, Islamic Fintechs
now, covering a wide range of customers current state evaluation and a future on the ground, and industry experts, to help
and financial needs via several emerging state outlook. provide a holistic overview of the sector.
technologies.
2. Index Rankings
In this context, it is crucial to take stock of 5. Industry Views
Build a forward-looking Global
the various efforts in the growing Islamic Present industry views from leading
Islamic Fintech Index (“GIFT Index”)
Fintech ecosystem in a systematic way, and ecosystem experts in the Islamic Fintech
that benchmarks countries with the
this Report provides a consolidated view. space that highlight existing challenges,
most conducive ecosystems for the
opportunities and possible ways forward.
development of Islamic Fintech. The
Index will evaluate Islamic Fintech
Purpose talent, regulation, infrastructure, and
market.
The purpose of this Report is to become
a key global resource in benchmarking 3. Market Sizing
and guiding innovative and socially useful Present a market sizing of the global
applications of Islamic Fintech world-wide Islamic Fintech market, based on
for Government financial regulators and country-level estimates for market
agencies, Islamic Fintechs, and venture activity in 64 key OIC and non-OIC
capital firms in this space. countries.
6 Global Islamic Fintech Report 2021 Introduction
Landscape
Customers The Islamic Fintech Framework
4th Industrial Revolution-driven technologies exponentially
enhancing and/or disrupting 20th century Shariah-compliant financial services,
operations, business models, and customer engagement
iFintech services Enabling Technologies
Give &
Consumers Protect SOCIAL FINANCE INSURANCE AI
(e.g. HNWI, mass Waqf InsureTech AI
affluent, low income) Zakat TakaTech
Machine Learning
Sadaqah
Data & Analytics
Big Data
Save & DLT
Invest WEALTH MANAGEMENT DEPOSITS & LENDING
Robo-Advisory Asset Challenger Mortgages Blockchain
PFM Management Banking Personal Finance Crypto
Businesses/ Pensions Open Banking Student Finance Tokenisation
Organizations
SECURITY
Finance Biometrics
RAISING PAYMENTS CAPITAL DIGITAL ALTERNATIVE Identity Verification
FUNDS MARKETS ASSETS FINANCE
Payments Cybersecurity
Peer 2 Peer Remittances Investment Platforms & Alternative
Crowdfunding FX Trading Exchanges Finance CLOUD
Sukuk Wallets & SME Finance
Cloud
Financial Custodians Trade
Token Issuers Finance SaaS
Institutions
BACK OFFICE MIDDLE OFFICE BUSINESS INTELLIGENCE
iFintech IT Risk Dashboards
operations HR Treasury Decision making tools
Compliance Supply Chain Market research
Accounting Customer service or onboarding
Ecosystem
Enablers
SUPPORTING INSTITUTIONS
ADVISORY LEGAL AND REGULATORY FINANCIAL INSTITUTIONS TECHNOLOGY FIRMS
ENABLERS Research Institutions
Lawyers Venture Capital Firms Incumbent “Big Tech” Large Education & Training Institutes
Shariah Scholars Global: Multilateral Institutions Islamic Banks Technology Firms Fintech Associations
Consultants National: Financial Regulators Sovereign Wealth Funds Accelerators
1
8 GlobalIslamic
Global IslamicFintech
FintechReport
Report2021
2021 Islamic Fintech Landscape
Landscape
The Islamic Fintech Services Landscape
iFintech services (225)
Give & SOCIAL FINANCE INSURANCE
Protect (12) (6)
Save &
Enabling Technologies (12)
WEALTH MANAGEMENT DEPOSITS & LENDING
Invest (32) (40)
Customers
Finance RAISING FUNDS PAYMENTS CAPITAL DIGITAL ALTERNATIVE FINANCE
(44) (37) MARKETS (2) ASSETS (20) (32)
iFintech operations (4) Note:
Note:See
Seefull
fullIslamic
IslamicFintech
FintechDatabase
database in
in Appendix
Appendix 44
Ecosystem Enablers
92 Global
GlobalIslamic
IslamicFintech
FintechReport
Report2021
2021 Islamic Fintech Landscape
Landscape
The landscape is young and fragmented, several success stories are
leading the way for Islamic Fintech’s next generation
Industry Map
Islamic Fintechs by Sector
Social Finance (Zakat/
Waqf/Sadaqah)
Operations (Back/Middle Office/
6 Business Intelligence)
Case Studies 4
Technology Enablers
(DLT/Cloud/AI/SAAS)
Wealth Management Digital Assets Capital Markets (Investment/ Deposits & Lending
2 Trading / Sukuk)
11
Company Headquarters Company Headquarters Company Headquarters
Insurance
USA Bahrain (Insuretech / Takatech) 12
Germany
Raising Funds (P2P /
Rain
44 Crowdfunding)
Wahed Invest Insha
Success Factors Success Factors Digital Assets Success Factors
Directly licensed by Bahrain’s Central Bank (Platforms & Exchanges 20 Successfully identified target underserved
First-mover in global Islamic robo-advisory
Diversifying into banking with acquisition / Token Issuers / segment (Turkish diaspora)
of Niyah Funding Stage: VC-backed Wallets & Custodians)
Used banking as a service provider to
40
Funding Stage: Series B accelerate go-to-market and licensing
Deposits & Lending
Company Headquarters 32
(Challenger Banking
Company Headquarters UK Open Banking / Funding Stage: Corporate Venture
Wealth Management Mortgages / Personal
USA (Asset Management / Finance / Student
Fasset PFM / Robo-Advisory / Company Headquarters
Zoya Financial Finance)
Pensions) United Kingdom
Success Factors Success Factors
Novel filtering system for stocks Pioneering Islamic asset tokenisation via an
exchange mechanism Algbra
Funding Stage: VC-backed Alternative Finance 32
37
(Alternative Finance / Success Factors
Funding Stage: VC-backed Payments (Payments /
SME Finance / Trade Plays across the financial lifecycle of
Remittances / FX)
Finance) customers’ everyday financing
needs
Funding Stage: VC-backed
Historic growth sectors such as Raising Funds are
Key: now maturing with other sectors such as Payments
Finance 135 and Deposits & Lending seeing an increase of new
firms
Save & Invest 72
Give & Protect 18
Enabler 16
See full Islamic Fintech Database in Appendix 4
10 Global Islamic Fintech Report 2021 LandscapeThe Islamic Fintech market size in the OIC was
$49 Bn in 2020, and is projected to grow at 21% CAGR to
$128 Bn by 2025
Current: The estimated Islamic Fintech Top 5 Islamic Fintech Market Sizes 2020 ($ Bn)
market size for OIC countries in 2020
was $49 Bn. This represents 0.72% of the
17.8
17.9
current global Fintech market size, based on
transaction volumes.
Projected: The Islamic Fintech market size
for OIC countries is projected to grow at 21%
CAGR to $128 Bn by 2025. This compares 9.2
favorably to the conventional Fintech CAGR
of 15%.
Top 5 Markets: The top 5 OIC Fintech 3.7 3.0 2.9
markets by transaction volume for Islamic
Fintech are Saudi Arabia, UAE, Malaysia,
Turkey and Kuwait, indicating a strong
Saudi Arabia Iran United Arab Malaysia Indonesia
dominance by MENAT region countries. Emirates
Collectively, the Top 5 markets account for
75% of the OIC Islamic Fintech market size,
indicating high concentration of market
activity among leading jurisdictions.
Note: The metric applied was estimated and
projected transaction volumes, not corporate
revenues.
11 Global Islamic Fintech Report 2021 LandscapeSeveral types of enabling institutions exist, however the legal and regulatory environment for Islamic Fintech is still evolving National Level: Supranational Level: Likely adoption of AAOIFI Standards: No universally accepted regulatory body Securities Commission (Malaysia), Financial Nonetheless, at the supranational level, Given that AAOIFI Standards are already for Islamic Fintech exists globally. This is Services Authority (Indonesia), and Central Bahrain-based AAOIFI (the Accounting and followed in 21 Muslim-majority countries/ unsurprising, as similar to the nature of Bank (Saudi Arabia), as well as regulators Auditing Organisation for Islamic Financial jurisdictions, it is likely that the Standards, conventional financial services regulation, in Western markets such as the Financial Institutions) is currently drawing up voluntary including those relating to Islamic Fintech regulation of Islamic financial institutions, Conduct Authority in the UK, who authorise Shariah standards for certain segments of segments, will continue to gain traction including Islamic Fintech firms, is dealt Islamic Fintechs within their conventional Islamic Fintech activity, e.g. crowdfunding, and national regulators will duly take them with nationally. As such, some of the major regulatory framework. cryptocurrency. into consideration, given the importance of regulators involved in the development Islamic law values and ethics to developing of regulations and the legal facilitative this nascent sector. framework for Islamic Fintech are found where there is significant activity on the ground. These regulators include, but are not limited to, Bank Negara Malaysia & 12 Global Islamic Fintech Report 2021 Landscape
In just the past year, several developments have occurred in the global
Islamic Fintech space, fuelling a positive sector outlook
Market developments: monetisation Fintech solution, as well as initiatives that will help facilitate the further
One of the most newsworthy stories of Islamic Fintech Ta3meed becoming the first growth of their national Islamic Fintech
Islamic Fintech in 2020 was Wahed’s Islamic Fintech in Saudi Arabia to provide spaces. For instance, Saudi Arabia admitted
acqusition of Niyah, since it provided clear purchase order financing. Moreover, new another nine Fintechs into its regulatory
evidence that the growth of the Islamic geographies such as non-OIC markets like sandbox, a sign of the swift pace it is moving
Fintech sector has now reached a point Germany continue to open up to Islamic at to grow Saudi Islamic Fintech. Meanwhile,
where one standalone Islamic Fintech can Fintech: INAIA, a German homegrown Islamic Egypt’s FRA approved a draft law regulating
acquire another. In 2020, the global Islamic Fintech, is introducing real estate financing Fintech in non-banking financial activities.
Fintech market also witnessed a number and payments solutions on its platform in As a huge latent market for Islamic Fintech,
of innovative use cases that heralded a 2021. this may help facilitate its growth in Egypt Ta3meed becomes the
first Saudi Fintech to
maturing of the market and which augur well amid increasing Egyptian interest in Islamic offer Islamic purchase
for the future of the industry. These include Regulatory developments: finance. order financing
LSE-listed Supply@ME Capital (SYME)’s plans On the regulatory front, several key countries INAIA, Germany´s only
homegrown Islamic
to introduce Shariah-compliant inventory in Islamic Fintech introduced regulatory Fintech, will launch real
estate financing and digital
payments on its platform
in 2021
CapBay forms a joint Venture with Kenanga LSE- listed SYME announces
Saudi Central Bank allows 9 more Canada-based Manzil partners with KOHO Capital Islamic to create on of the world´s Islamic inventory monetisation
Fintechs into its regulatory sandbox to launch halal prepaid Visa cards first Islamic supply chain Fintechs Fintech solution
April 2020 June July Aug Sept Nov Dec Jan 2021 Feb
Indonesia´s Ammana MFMi Group choose Mambu´s Riyadh-based Islamic alternative Central Bank of Oman
cloud-native banking platform Key:
Fintek Syriah & BPKH savings platform Hakbah joined launches Fintech regulatory
unveil a Hajj financial to offer new Islamic Fintech the Visa Fintech fast track sandbox Innovative use cases
planner and savings products such as a digital
Shariah-compliant factoring Ethis Group launches first Saudi Aramco-backed Wahed
deposit feature. Regulatory developments
full Shariah-compliant equity acquires Niyah, a British
Wahed closes a $25 crowdfunding platform in digital banking app created for
Muslims Company News
million investment round
Egypt´s FRA approves draft law
by Saudi Aramco’s VC
regulating Fintech in non banking
investment arm.
financial activities
13 Global Islamic Fintech Report 2021 Landscape2021 GIFT Index
2021 GIFT IndexThe Global Islamic Fintech (GIFT) Index is the first systematic index for global Islamic Fintech Index Overview: Methodology: Although there are an increasing number of The index applied a total of 32 indicators countries which are seeing Islamic Fintech across five different categories for each activity, or are well-placed to facilitate such country. These five categories are: Talent; activity, no specific ranking exists to do Regulation; Infrastructure; Islamic Fintech to compare such countries in the Islamic Market & Ecosystem; and Capital. These Fintech space. As such, a clear need exists categories were weighted before in order for such an exercise, and this Report presents to derive an overall score, with a heavier the first Global Islamic Fintech (GIFT) Index. weighting given to the Islamic Fintech Market This Index represents which countries are & Ecosystem category, since this is the most conducive to the growth of Islamic most indicative by far of a country’s current Fintech Market & Ecosystem in their conduciveness to Islamic Fintech specifically. jurisdictions. Inclusion Rationale: The index comprises an overall ranking of 64 OIC and non-OIC countries. These countries were included on the basis of their existing Islamic Fintech market activity, the presence of Islamic finance capital (a facilitator of growth in Islamic Fintech), or due to their systemic importance to the wider global Fintech ecosystem (e.g. China, Japan). 15 Global Islamic Fintech Report 2021 2021 GIFT Index
Malaysia, Saudi Arabia and the UAE lead the Index;
OIC countries dominate Top 10, non-OIC ecosystems are developing fast
Top 20 Countries by GIFT Index scores Results:
Malaysia, Saudi Arabia and UAE lead the
Index
Malaysia 87
Saudi Arabia 76
Top 10:
United Arab Emirates 70
Within the set of 64 countries, 9 out of the
Indonesia 66
Top 10 (90%) countries are OIC, Muslim-
United Kingdom 56
majority countries; the exception is the
Bahrain 54
UK, which has a thriving Islamic Fintech
Kuwait 48
ecosystem due to various factors, e.g. active
Iran 46
Islamic Fintech community and presence of
Pakistan 44
several Islamic Fintechs; regulatory support;
Qatar 44
a thriving Fintech sector; and a ready talent
Jordan 41
pool from developed Islamic finance and
Singapore 41
technology sectors
United States 40
Hong Kong 38
Top 20:
Oman 38
Compared to the Top 10 rankings, the Top 20
Australia 35
have a significantly higher proportion of non-
Switzerland 35
OIC countries, indicating that they are fast
Canada 35
developing ecosystems which may compete
Bangladesh 35
with the incumbents in years to come: 12
Luxembourg 34
out of the top 20 countries (60%) are OIC,
Muslim-majority countries, while 8 (40%) are
non-OIC countries
TEEL OIC countries
Non-OIC countries
16 Global Islamic Fintech Report 2021 2021 GIFT IndexThe heatmap overview and regional comparison suggest strong OIC region
showings, yet conducive markets also exist in non-OIC regions
The heatmap overview suggests strong showings by regions that are However, regional comparison suggests several non-OIC regions are
also strong in Islamic finance, e.g. SE Asia and the Gulf Region also quite conducive to Islamic Fintech, e.g. Americas, Europe
Heatmap of GIFT Index Scores Regional Comparison (Median Values)
MENA-GCC 51
Americas 35
SE Asia 32
Europe 32
South & Central Asia 24
MENA-Other 19
Sub-Saharan Africa 14
Low High
Global Median 25
Note: Median Values were used for regional comparisons to avoid skewing effect
of outliers. Global Median based on 64 countries.
17 Global Islamic Fintech Report 2021 2021 GIFT IndexHubs Analysis
Hubs AnalysisHubs Intro & Methodology
A new addition to the report this year is the The survey asked questions around the key Below is a guide to the
benchmarking of Islamic Fintech hubs with pillars of ecosystem development and this
infographic for each hub:
an index. In addition, a number of the key section of the report summarises these for
hub that have a significant level of activity each hub.
or show the potential for developing into Hub Profile information
a major Islamic Fintech hubs have been
showcased with additional research carried
out by way of a hubs survey with the relevant
local ecosystem representatives.
Hub self assessment of key pillars within of
ecosystem development (score out of 5):
5. Considerably Better than Other Hubs (USP)
4. Somewhat Better than Other Hubs
3. Comparable to Other Hubs
2. Somewhat Worse than Other Hubs
1. Considerably Worse than Other Hubs
(recognised weak point)
Key verticals and companies, including trending
vertical, one seen as the area likely to see most
activity in 2021
19 Global Islamic Fintech Report 2021 Hubs AnalysisSpecial Contribution from Strategic Partner
Building a World Class
Islamic Fintech Hub
Survey Results:
Result from the survey of key industry
participants, with additional commentary
is presented throughout the report. See
Dr. Dalal Aassouli Thaddeus Malesa
Assistant Professor of Islamic Finance Economist
page 32 for more survey highlights
HBKU College of Islamic Studies Qatar Financial Centre
Fintechs: What are the greatest
hurdles to growth for your firm?
In Qatar we are working toward putting into little was destined to the MENA region or Hub (QFTH) is well positioned to support the
place an accommodative and supporting Islamic Fintech. The conducive environment local positioning and expansion of local and
ecosystem for Islamic Fintechs to succeed we are constructing allows Islamic Fintechs international Fintechs. QFTH’s first cohort
1 Capital
within and beyond our borders. This to access funding and benefit from a variety welcomed 24 Fintechs – 11 in its incubator 2 Consumer Education
ecosystem is dependent on four critical of mentorship avenues to safeguard their and 13 for its accelerator. Beyond that,
success factors: a conducive environment commercial viability. Without these in place, efforts are underway to develop a vibrant 3 Finding Talent
with ample funding sources coupled with few players would come to market and even angel investor community in Qatar and
4 Ongoing Impact of Covid-19
a variety of support mechanisms, access fewer would last. This is facilitated, in the attractive incentive packages to lure leading
to talent to promote innovation, engaged case of Qatar, by a strong set of domestic Fintechs. For example, qualified Fintechs 5 Differing Regulation
customers to ensure the sustainability of Islamic financial institutions with increasing applying for a Qatar Financial Centre (QFC)
businesses and partnerships to enable the global links. The country is one of the leading business license are eligible for waiving of
Arrows = Change vs 2019
scalability of Islamic Fintech solutions. systemically-important Islamic banking both its application fee and 1st year renewal Top 5 hurdles ranked by survey responses
Together, these four pillars provide the solid jurisdictions in the world – with Islamic fee as well as complimentary access to its from 12 options presented
foundation on which Islamic Fintechs can banking assets representing more than 20% Fintech Circle floor for the first 12 months
flourish. We welcome partners to join as of the total local Islamic banking assets and on its platform. Critically, Islamic Fintechs
we progress to realizing our aspirations in about 6% of the global Islamic banking assets operating out of QFC will have a dedicated
Scarcity of Capital remains the biggest hurdle to
this strategic area for us and the worldwide in 2019. In addition, the recent consolidation internal team and the QFTH to assist with
growth for Islamic Fintechs. Since 2019, finding
Islamic Finance industry. initiative of Islamic banks is likely to increase market and investor access. On the regulatory top talent and the complexity of the regulatory
their overall capitalization and funding side, Qatar Central Bank (QCB) announced landscape have become a somewhat less
Qatar is striving hard to build a vibrant capacity, thus providing more avenues its ambition to establish a central Shariah challenging, with Consumer Education becoming
a greater challenge and the Ongoing Impact of
environment and multiple financing channels for innovation and for supporting Islamic supervisory Board in its Second Strategic Plan Covid-19 entering the top five as a new challenge
for Islamic Fintechs to succeed. Globally Fintechs. On the other hand, the rise of global for Financial Sector Regulation as well as its to growth.
investors poured $30.4 billion into Fintech Fintech hubs has brought accelerators and 2019-dated 10th Financial Stability Review. Survey Results
during the first nine months of 2020, however incubators to the fore, and Qatar Fintech The permanence of Qatar’s Shariah Board
20 Global Islamic Fintech Report 2021 Hubs AnalysisSurvey Results Special Contribution from Strategic Partner
Fintechs: Which factors determined the choice of your firm´s HQ?
Several factors affect the choice of HQ location by
Founder(s) Local Knowledge/Experience 4.2 Islamic Fintechs. Many of these can be positively
impacted by progressive policy decisions and enabling
4.0
“Qatar is striving to build
Regulatory Enviroment
regulatory initiatives, a trend seen in many ecosystem
hubs over the last twelve months, paving the way fot
Proximity to Target Customers 4.0 further growth in the Islamic Fintech sector.
Strength of Local Fintech Industry 3.9 a vibrant environment
Availability of Talent 3.8 and multiple financing
Access to Capital 3.8
channels for Islamic
5 - Very Important
Fintechs to suceed.
Strength of Supporting Ecosystem 3.6
4 - Somewhat Important
Strength of Local Conventional Finance Industry 3.4 3 - Neither Unimportant/Important
2 - Somwhat Unimportant
3.4 1 - Very Unimportant
Strength of Local Islamic Finance Industry
will provide a consistent standard-bearer in (QNRF). The recent COVID-19 pandemic successful introduction of novel customer- include Fintech lab centers, hub networks,
Islamic Finance offering sector participants, demonstrated how the country prioritises centric products and services, including venture capitalists, and other influential
including Islamic Fintechs and customers learning and quality education amid the digital on-boarding, by established Islamic parties. Together these factors will enable the
alike, confidence in the industry while pandemic thanks to its sophisticated banks has broadened their appeal while also scalability of Islamic Fintech solutions out of
simultaneously promoting consistency. learning infrastructure and leading academic pointing to significant commercial promise Qatar.
institutions. for Islamic Fintechs.
Access to talent is another kernel for Collective efforts to boost the four supporting
Fintechs’ success. As Fintech is shaping the Acceptance of Islamic Fintech also depends Islamic Fintechs can also develop their pillars for Islamic Fintech´s ecosystem in
future of many global jobs in the financial on an engaged customer base, with security, commercial activities through collaborations Qatar are underway. We see great promise for
industry, there has been a need to develop user convenience and customer-centric with local and international stakeholders. The this sub-sector, especially with our existing
dedicated programmes and capacity building innovations being key catalysts. Qatar as a pre-existing relationships between Qatari and competitive advantages in the Islamic
initiatives globally to address this skills gap. market is already prone to wide adoption of Islamic financial institutions abroad, as well banking space. Building a supportive and
Qatar’s commitment to shifting towards a new technologies, with an overwhelmingly as the branch networks Qatari banks have sustainable Islamic Fintech ecosystem is
knowledge-based economy in line with its young population that has easy access invested in overseas, may further facilitate destined to widen commercial opportunities,
National Vision 2030 has contributed to to speedy internet, in a country that is the global distribution of Islamic Fintech by spark international connections, and deepen
developing dedicated research, educational dominantly of Islamic persuasion. The QFC leveraging on their large customer networks. technical expertise that will drive the sector
and capacity building programmes in has recently launched the ‘QFC Tech Talk Further, local and global partnerships can forward and position Qatar as a leading
partnership with local academic institutions Series’ where participants are introduced facilitate the sharing of best practices Islamic Fintech hub. We look forward to
as well as the Qatar National Research Fund to such critical aspects. In addition, the through broader stakeholder engagement to having you join us on this journey!
21 Global Islamic Fintech Report 2021 Hubs AnalysisSpecial Contribution from Strategic Partner
Malaysia Leads Global Islamic Economy Indicator for Eighth Consecutive
Years – Driven by Strong Islamic Finance Initiatives and Ecosystem
Surina Shukri
CEO
“Malaysia offers the perfect platform for
Malaysia Digital Economy
Corporation (MDEC)
Islamic Fintech companies to roll out their
product offerings before tapping into other
Malaysia continues to forge the way ahead Malaysia to continue to lead as the global
in Islamic economy and finance, leading Islamic Fintech hub and towards becoming
Muslim-majority countries.
the way for the eighth consecutive year the Heart of Digital ASEAN. With our strong
based on the ranking by the Global Islamic digital economy ecosystem within the
Economy Indicator (GIEI). Its burgeoning Organisation of Islamic Cooperation (OIC)
Islamic Fintech and economy sectors member nations, we have comparative
continue to flourish aided by governmental advantage over others in providing Shariah-
support and Malaysia Digital Economy compliant Islamic finance and Fintech a report from Thomson Reuters projected and challenges. Effective collaboration
Corporation’s (MDEC) continuous push to services globally. Shariah-compliant assets worldwide will will improve innovation. The key towards
expand the digitalisation of the economy reach US$3.8 trillion by 2022. On top of the achieving inclusive financial growth is
and an aggressive creation of a conducive We are extremely proud of our leadership recently-signed Regional Comprehensive to have a strong effort to embed Fourth
ecosystem for which it can thrive on. position and MDEC will continue to work with Economic Partnership (RCEP) Agreement Industrial Revolution (4IR) technologies like
financial regulators and industry partners which created the world’s largest trading bloc, Islamic Fintech to ensure fair and equitable
For years, the government of Malaysia has from all relevant areas to further enhance our Malaysia stand to capture 30 per cent of the distribution across income groups and a
identified Islamic finance and Islamic digital capabilities, facilities and capacities to ensure world population. shared prosperity for all in line with the
economy as Key Economic Growth Activities we maintain our global leadership position. recently-announced Malaysia Digital Economy
(KEGA) towards achieving and maintaining A new economic frontier has opened up for Blueprint (MyDIGITAL) and Malaysia 5.0.
its position as the global Islamic Fintech hub. According to the State of the Global Islamic Malaysia. Malaysia’s excellent track record in
Malaysia is the largest Sukuk issuer in the Economy Report (GIER) 2020/21, Muslims fundraising augurs well overall, with the
world as well as having one of the best Halal are expected to spend US$2.4 trillion by “To continue stimulating growth in the Securities Commission reporting a 130
standards globally. 2024, up from US$2.2 trillion in 2018. GIEI Islamic digital economy, a collective effort percent increase on 2018 involving 1,449
also revealed that 66% of consumers are and commitment from various parties will SMEs, 18,700 investors (91 percent increase)
“These global recognitions pave the way for willing to pay more for ethical products while be crucial to identify opportunities, issues and 5,612 campaigns (131 percent increase)
22 Global Islamic Fintech Report 2021 Hubs AnalysisSpecial Contribution from Strategic Partner
launched. Islamic capital market grew by While FinTech Booster, in collaboration with
eight percent, to RM2 trillion, outpacing BNM, is a capacity-boosting programme by
overall capital market growth of three percent. MDEC to assist Fintech companies, both local
and international, to develop their products All participants: Which jurisdiction do you expect
Malaysia offers the perfect platform for and services via three strategic modules; to see most Islamic Fintech growth in the next
Islamic Fintech companies to roll out their Legal and Compliance, Business Model and 12 months?
product offerings before tapping into other Technology. Since its launch, there have
Muslim-majority countries. Bank Negara been six public workshops and nineteen
ASEAN 36%
Malaysia, BNM (Malaysia Central Bank) and private workshops conducted with over
the Securities Commission have allowed 400 registrations as of March 2021 on the MENA 34%
for innovation in FinTech to proliferate such website, ranging from both local and foreign
expansion. companies. UK 18%
Other Asia 8%
The Malaysia government, through MDEC, The second pillar, to be launched this year,
have implemented various measures and will be on market access and business North America 3%
initiatives. In partnership with regulators, opportunities for Fintech, and the third,
agencies, corporations, financial institutions, technological integration.
Other Europe 2%
accelerators and other relevant bodies, MDEC
Other Africa 1%
continues to roll out and introduce plans and Malaysia have all the right makings and
programmes to conquer this new economic ecosystem to make it the global Islamic
opportunity. Fintech hub which includes having a Survey Results
matured Islamic finance environment and
One such initiative is the Digital Financial has a conducive and cost-effective business
Inclusion which is aimed at improving the setting. It is also blessed with talents, from
knowledge of the B40 (bottom 40 percent having world-renowned academics, Shariah
earners) and micro SMEs on financial scholars to Islamic finance experts as well
services. The collaborative programme, in as a steady stream of local and international
partnership with 11 Fintech companies have talent pool in Fintech and Islamic finance.
onboarded 2,300 users from the three main All these factors bode well in maintaining
product offerings mainly the micro financing, its driving seat in the Wave 2.0 of Islamic
micro investment and micro insurance. finance. Malaysia is ready and waiting.
23 Global Islamic Fintech Report 2021 Hubs AnalysisINDONESIA Index Score 66
Country Rank vs
Home to the world’s largest Muslim population and innovative Islamic Peers
Fintechs, with significant headroom for growth 3 UAE
4 Indonesia
5 UK
Ecosystem Representatives
KEY SECTORS AND COMPANIES
Hub Self Assessment Alternative Finance Fintech Syrariah Indonesia Fintech Indonesia
Regulation Deposits & Lending
Islamic Finance Shariah Market Size
Market Share Compliance Digital Assets
3 4
3 Insurance 2020 2025
$ 2.9 Bn $ 8.3 Bn
Access for
5 Banks’
33 33 International
Crowdfunding
Participation Trending Area CAGR 23%
Fintechs
3
Regulatory Bodies
55
Capital Proximity Payments
4
4
to Customers
Talent Raising Funds Bank Indonesia Otoritas Jasa Keuangan
Social Finance Sandbox Sandbox
Wealth Management Regulatory Initiatives
Lending
Crowdfunding
Payments
E-Money
24 Global Islamic Fintech Report 2021 Hubs AnalysisMALAYSIA Index Score 87
Country Rank vs
Rated number one growth jurisdiction for Islamic Fintech in 2021 by Peers
Industry survey participants 1 Malaysia
2 Saudi Arabia
Leading jurisdiction for Islamic Fintechs, which are attracted to a supportive legal and
3 UAE
regulatory environment, strong market for Islamic financial services & abundant talent
KEY SECTORS AND COMPANIES Ecosystem
Representative
Hub Self Assessment Alternative Finance
FIntech Association of Malaysia
Regulation Capital Markets
55 Market Size
Islamic Finance Shariah Enabling Technologies
Market Share 5 Compliance
5
44 2020 2025
Insurance
$ 3.0 Bn $ 8.5 Bn
Access for
5 Banks’
44 4
4 International
Challenger Banking CAGR 23%
Participation Trending Area
Fintechs
Regulatory
4
4 Payments Bodies
55 Bank Negara Malaysia
Capital Proximity
to Customers Sandbox
55 Raising Funds
Talent
Social Finance
Regulatory Initiatives
Wealth Management
Digital Currency & Tokens
EMoney
EKYC
Digital Banking
Digital Assets
25 Global Islamic Fintech Report 2021 Hubs Analysis26 Global Islamic Fintech Report 2021 Hubs Analysis
SAUDI ARABIA Index Score 76
Country Rank vs
Peers
Largest regional financial services and Islamic Finance market, strong government 1 Malaysia
and regulatory support for entrepreneurs and the second largest outward remittance 2 Saudi Arabia
market in the world 3 UAE
Ecosystem
Representative
KEY SECTORS AND COMPANIES
Fintech Saudi
Hub Self Assessment Accounting
Regulation Market Size
Deposits & Lending
Islamic Finance Shariah
Market Share Compliance 2020 2025
44 33 Enabling Technologies $ 17.9 Bn $ 47.5 Bn
33
CAGR 22%
Access for
5 Banks’ 33 33 International
SME Finance
Participation Trending Area
Fintechs
Regulatory
33 33 Bodies
33
Saudi Arabian
Capital Proximity Monetary Authority
to Customers Payments
Sandbox
Talent
Wealth Management
Regulatory Initiatives
Payments
Open Banking
27 Global Islamic Fintech Report 2021 Hubs AnalysisUnited Arab Emirates Index Score 70
Country Rank vs
A progressive regulatory environment with access to capital Peers
in two industry leading ecosystems
2 Saudi Arabia
3 United Arab Emirates
4 Indonesia
Ecosystem
Representatives
KEY SECTORS AND COMPANIES
Hub71
Hub Self Assessment Deposits & Lending
Capital Markets DIFC Fintech Hive
Regulation
Islamic Finance Shariah Digital Assets Market Size
44
Market Share Compliance
44
33 Enabling Technologies 2020 2025
$ 3.7 Bn $ 11.0 Bn
Access for
5 Banks’ 44 4
4 International
Payments
Participation Trending Area CAGR 24%
Fintechs
3 Regulatory
44 3
3 Insurance Bodies FRSA
Capital Proximity
to Customers
Raising Funds
Talent DFSA ADGM
Social Finance Sandbox Sandbox
Regulatory Initiatives
Wealth Management
Payments Digital Banking
RegLab Third Party
Providers
Virtual Assests
Digital Lab
Robo-Advisory
28 Global Islamic Fintech Report 2021United Kingdom Index Score 56
Country Rank vs
Peers
One of the leading global Fintech hubs with a pioneering regulatory environment, 4 Indonesia
booming technology sector, large talent base and support infrastructure that allows 5 United Kingdom
the UK to punch above its weight in the development of Islamic Fintechs
6 Bahrain
Ecosystem Representative
KEY SECTORS AND COMPANIES
UK Islamic Fintech Panel
Hub Self Assessment Alternative Finance UK Islamic Fintech Panel
Regulation
Deposits & Lending Regulatory Bodies
Islamic Finance Shariah
44
Market Share Compliance
Digital Assets
33
Enabling Technologies
2
2 Bank of England The Financial Conduct Authority
Access for Sandbox
5 Banks’
44 33 International
Challenger Banking
Participation Trending Area
Fintechs
33
Payments Regulatory Initiatives
44
Capital Proximity
to Customers Raising Funds Payments
55
Talent Crowdfunding
Social Finance
Challenger Banking
Wealth Management
Open Banking
Digital Assets
29 Global Islamic Fintech Report 2021 Hubs AnalysisProminent OIC Hubs
BAHRAIN Index Score 54 PAKISTAN Index Score 44 QATAR Index Score 44
Country Rank vs Peers Country Rank vs Peers Country Rank vs Peers
5 UK 8 Iran 9 Pakistan
6 Bahrain 9 Pakistan 10 Qatar
7 Kuwait 10 Qatar 11 Jordan
5
3 4
3 2 3
3 3
1
1 2 3 2
5 5
1
2
3 2 3
4 3 4
5
Ecosystem Ecosystem Ecosystem
Representative Representative Representative
Bahrain Fintech Bay Pakistan Fintech Association Qatar Fintech Hub
Market Size Market Size Market Size
2020 2025 2020 2025 2020 2025
$ 133 M $ 360 M $ 1.1 Bn $ 2.8 Bn $ 849 M $ 2.1 Bn
CAGR 22% CAGR 21% CAGR 20%
Regulatory Regulatory Regulatory
Bodies Bodies Bodies
Central Bank of Bahrain
Qatar Central Bank Qatar Financial Centre
Sandbox State Bank of Pakistan Regulatory Authority
Trending Area Digital Assets Trending Area Payments Trending Area Payments
30 Global Islamic Fintech Report 2021 Hubs Analysis31 Global Islamic Fintech Report 2021 Hubs Analysis
Industry View
Industry ViewIndustry View Sector Maturity
(Survey based): Fintechs: What is your Company´s current stage?
2020
Established Acquired
3%
(Profitable) 5%
To gather the views of the industry a Participants were asked a range of questions
In technical
survey was conducted with 330 industry which covered: 18%
development
participants with 100 respondents (a 30% 36%
response with 8% margin of error at 95% For Fintechs: 44% Growth / Scaling
Demographic information, funding stage, 2019 52% (Post-Revenue)
confidence level). The participants fell into
one of six categories: future funding needs, regulatory status,
20%
Shariah compliance status, key aspects
of jurisdiction/market choices, current Launched
Fintechs partnerships and aspirations, enablers and (Pre-Revenue) 22%
Financial Institutions challenges to growth
Technology Providers For Other Categories:
Ecosystem Stakeholders (e.g. Regulators, Modes of engagement with Fintechs
Financial Centres, Industry Associations, Regulation
All participants:
Accelerators) Fintechs: What is your Company´s regulatory status?
Views on growth verticals and jurisdictions
Service Providers (e.g. Law firms,
Consultancies, Shariah Advisors) In the process of
applying for a
2020
Investors regulatory license
11%
Unregulated (will Directly regulated
seek regulated 13% 21% 36%
21%
status in future)
Islamic Fintech remains a maturing sector, evidenced by a higher proportion of Islamic 2019 15%
Fintechs at more advanced stages of development and regulatory authorisation than in 2019. 24%
21%
Indirectly regulated
(via an appointed 18%
This section highlights the results representative)
of the survey with commentary
Unregulated (expect to
from key industry participants 22% remain unregulated)
33 Global Islamic Fintech Report 2021 Industry ViewSpecial Contribution from Strategic Partner
Survey Results
The Need for new Fintechs: What are the greatest
enablers to growth for your firm?
Technology First Players 1 Capital
Greater availability of Capital
remains the biggest enabler to
growth for Islamic Fintechs.
in Islamic Finance 2 Unserved Customers Increased impetus towards
digitisation entered the top five
3 Talent Base drivers of opportunity compared
to 2019
4 Geographic Expansion
5 Increased Digitisation after Covid-19
Arrows = Change vs 2019
Top 5 enablers ranked by survey
Stella Cox CBE responses from 12 options presented
Managing Director
DDCAP Group™
As a consequence of the Covid-19 global and post trade services platform has been boundaries with its offering. By example we but whose ambition, direction and product
pandemic Islamic financial markets widely available to the marketplace for over were first to move beyond embedding Shariah is very complementary to DDCAP’s. We
participants, like their global counterparts, a decade and was a pathfinder in delivering based contractual and screening tools look forward, in our capacity of service
have rapidly elevated their awareness of the automated services, with various straight- within our platform to include governance and technology provider to a specialised
advantages of existing and evolving financial through processing capabilities, to Islamic considerations ranging from regular and expanding market, to announcing
technology. Phase one of the pandemic, not market participants. Any lingering reticence compliance protocols to sustainable and further joint value propositions that
surprisingly, brought an immediate focus to on the part of institutions in adopting full responsible asset preferences in inventory will continue to bring to our clients the
ensuring access to technology that brought automation has seemingly been swiftly allocation. However, partnership and co- efficiencies that they seek.
significant efficiencies to daily operating addressed and resolved during the past 12 operation has always been a cornerstone of
procedures. As market participants grappled months. DDCAP’s technology development strategy, as Having enjoyed such a constant presence
with the sudden imposition of remote previously illustrated by our ground breaking within this industry for more than 20
working practices, and the unwelcome We are very pleased to have been positioned collaboration with Refinitiv to provide a fully years has ensured our connection to
necessity of rotating employees between to play our part in delivering dependable, integrated treasury trading workflow for the developing requirements of the
remote and physical offices, being able to technology-based efficiencies that have Shariah compliant transactions. Co-operation market and its participants, but our
place full reliance on sustained, automated eased some of our clients’ burden during between leading brands is compelling, but we relationships with the newer technology
processes that assured business continuity an extremely challenging time for all of have come to recognise the impetus that is enabled companies has resulted in an
was of paramount importance. DDCAP us, irrespective of size or scale. DDCAP being created across our core markets by new expansion of DDCAP’s own business
Group’s own ETHOS AFP™ automated trading has always moved to innovate and push businesses creating technologies of their own interests. DDCAP’s majority shareholder,
34 Global Islamic Fintech Report 2021 Industry ViewSpecial Contribution from Strategic Partner
“
IPGL, has identified with technology focused,
global financial services for more than four
decades, having built and divested of major
Access to capital will continue to be a challenge for the
financial sector businesses that include foreseeable future, but interesting to observe the gradual
ICAP plc and NEX Group plc. IPGL’s own emergence of Angels and VCs with Shariah compliant
investment strategy is now wholly focused sector focus.
on new technologies. With our shareholder’s
proactive support, DDCAP has recently
started to invest in early stage companies
with exceptional Fintech strategies, whose
alignment to Shariah compliant, sustainable
and responsible business principles is equally failure is the cost and distraction of ensuring is creating significant opportunities for new by the aftershock of the global pandemic
important to us. The first of our strategic appropriate business and operational technology first players and there are exciting but emerging, new players with first mover
investments was with IslamicMarkets.com, support. There are additional aspects of UK Islamic start-ups proactively competing. advantage present enormous potential.
a leading financial intelligence and learning strategic guidance that we bring to our Peer- to-peer and Crowdfunding platforms That potential is not only attractive to
platform for the global Islamic economy. We investees. As a business that was initially for SME requirement and smaller ticket investors but to market participants seeking
increased that investment last summer and funded and incubated by an early stage investment in property and infrastructure to adjust fully to an operating environment
we are currently considering a number of VC, we offer our entrepreneurial CEOs the related projects are also at the forefront. that could be the beginning of ‘new normal’,
others. benefit of shared experience, the resources In terms of first mover developments, last whilst evolving business development
and skillsets of our shareholders and senior year we also saw the world’s first primary strategies that will take advantage of the vast
Early stage investment is of particular executive and, essentially, the wisdom of our sukuk delivered on blockchain and there is opportunities ahead.
interest to us as we are patient investors internationally diverse Shariah Supervisory keen competition to develop the first fully
with an established operating infrastructure Board. functioning Islamic crypto exchange.
conducive to early stage business
requirement. Our founder partners are We are excited by the Islamic Fintech Access to capital will continue to be a
better able to focus on growth when other ecosystem we see developing in the UK and challenge for the foreseeable future, but
potentially time consuming matters are overseas. Early technology developments interesting to observe the gradual emergence
addressed. In our experience, aside from a for Islamic financial purpose have prioritised of Angels and VCs with Shariah compliant
lack of early stage capital, perhaps the most enablement, but now a full range of disruptors sector focus. Current, difficult economic
significant contributor to start-up companies’ are emerging. The advent of Open Banking conditions prevail and are compounded
35 Global Islamic Fintech Report 2021 Industry ViewSpecial Contribution from Strategic Partner
Survey Results
Building the Tencent of the Fintechs: How much funding do you expect to raise in 2021
and what type od capital are you seeking?
Muslim World
7
6
Comapny Age (Average Years)
$3.5M
5 Key:
$4.5M Equity Capital
4 $3.6M
$5M
Revenue / Profit Share
Adam Sadiq 3 Based Financing
CEO SAFE Agreement
New World Group 2
$5.4M Working Capital Facility
1 $3.5M Debt Capital
Bubble: Average Round Size
Bridge / Mezzanine
0 Finance
0% 10% 20% 30% 40% 50% 60%
“
The leaders of the Islamic financial services
Percentage of Surveyed Companies
industry must do more to nurture the innovators
56% of Islamic Fintechs expect to raise an equity
and disruptors of tomorrow as has been done funding round in 2021 with an average round size
with their conventional counterparts of USD 5.0M. Others expect to pursue alternative
forms of funding with average round sizes varying
from USD 3.5M - USD 5.4M
The Islamic Finance ecosystem needs to home to 1bn of the world’s 1.8bn Muslims. The industry should place emphasis on done with their conventional counterparts.
undergo its own disruption for it to truly Within these economies, we currently see a businesses operating with a profit and growth We must back the changemakers of our
compete with the conventional markets. dislocation between conventional markets mindset – where operational flexibility is generation, fueled by passion and purpose to
and the broader Islamic ecosphere at large. underpinned by experienced, capable and build Islamic Fintechs for the entirety of the
This means that Islamic Finance must strive This presents tremendous uplift opportunity aligned management teams that capitalise on world’s unbanked, uninvested and uninsured,
to become an outward looking industry - with for proven industry-wide model ecosystems the growth supply chain; from origination to and benefitting traditional Islamic Finance
a global appeal transcending borders - that – like we have seen with Tencent – to execution to value realisation. consumers in the process.
presents unique solutions for real world be developed for the Islamic ecosphere,
problems. The potential for Islamic Fintech is incorporating finance, education and To date, a lack of access to capital, a It is only with an inclusive and well-rounded
immense as the world’s next great success healthcare among others. wider spread between the rich and poor, approach will we be able to tap the
story; it is a young industry with huge, disconnected markets and the over-servicing opportunities present across diverse industry
profitable opportunities within untapped In this age of disruption and digitisation, the of high net worth individuals versus the larger sectors where Islamic Finance and Islamic
emerging and frontier markets. Islamic Finance industry must close this gap customer base has rendered Islamic Finance Fintechs can play a role in bettering the lives
with the conventional markets by deploying as an insular and limited industry. The leaders of millions around the world.
Islamic Fintech can act as an enabler to widely smart, efficient and strategic capital of the Islamic financial services industry
growth and development, where the fastest towards robust and scalable businesses, must do more to nurture the innovators
growing major economies in the world are led by driven and able entrepreneurs. and disruptors of tomorrow as has been
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